The data coming through indicates generally that the pickup in the economy is continuing and MSCI is having to face yet again the annual question of whether or not to include the Chinese A-shares in its global indices. One can only imagine the pressure they are under to do it, just do it. Would it be the right decision? To force billions and billions of dollars in index tracking funds to buy into a market that is so, how shall we put this, different in its fundamentals from other major world markets? The MSCI guys are fully aware of both sides of this discussion. But just think of the pressure. Our sympathies are with them.
But it's the US where the short-term future of the world is being decided right now. As we go to press with this commentary of infinitesimal importance, the pressure is on the US Congress to pass Trumpcare. And the representatives in both houses are wondering how this plays out for them in the mid-term elections next year. "Pass it or else," is an interesting line for the negotiator-in-chief to take. It still feels to us like an unsustainable situation, with a healthy degree of emetic potential. Cheers!